NetOne board speaks on Muchenje return 

Source: NetOne board speaks on Muchenje return | The Herald February 22, 2019 Mr Lazarus Muchenje Africa Moyo Senior Business Reporter NETONE Cellular board chairman James Mutizwa says the company is pleased that a solution regarding the status of chief executive officer, Lazarus Muchenje, has been found, and is expecting him to continue the turnaround […]

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Source: NetOne board speaks on Muchenje return | The Herald February 22, 2019

NetOne board speaks on Muchenje returnMr Lazarus Muchenje

Africa Moyo Senior Business Reporter
NETONE Cellular board chairman James Mutizwa says the company is pleased that a solution regarding the status of chief executive officer, Lazarus Muchenje, has been found, and is expecting him to continue the turnaround efforts that saw the parastatal recording its first month-on-month profit during his reign.

Mr Muchenje, who was suspended in August last year for alleged “gross misconduct” relating to how he handled expired contracts for nine senior managers, has since bounced back at the State-owned enterprise.

Mr Mutizwa told The Herald Business on Wednesday that they are now hoping that the conclusion of Mr Muchenje’s issue brings smiles to the company, and are now hoping that he will continue to steer the company to profitability.

“We are delighted at NetOne to have brought closure to the CEO matter that had subsisted over the past seven months.

“The expectation from the board is that NetOne will continue with its positive trajectory and should provide a return to the shareholder,” said Mr Mutizwa

The decision to bring him back was made by the recently appointed five-member board. It is unclear what the board considered before settling on bringing back Mr Muchenje. Apart from prominent lawyer Mr Mutizwa, the new NetOne board also consists of Miss Susan Muchaneta Mutangadura, the deputy chairperson; Mr Winston Makamure; Mr Mathias Rangarirai Mavhunga and Mr Paradzai Mutandwa Chakona.

Mr Muchenje is famed for dragging NetOne out of the mud in 2018, turning it into a profit-making enterprise. NetOne declared its first month-on-month profit last year.

NetOne is yet to release its financial results for the year 2018. However, the business recorded a loss of $57,8 million for the year ended December 31, 2017, which was largely attributed to legacy issues that weighed down the company’s performance.

After assuming leadership of NetOne last year, Mr Muchenje started an aggressive approach to increase revenue through a network expansion drive and cost containment measures.

The actions resulted in NetOne’s mobile financial arm, OneMoney, increasing its active subscriber base, backed by increased network coverage throughout the country.

In line with its mission that speaks to transforming lives and developing communities through communication solutions, NetOne commissioned several base stations in previously marginalised areas and embarked on aggressive corporate social responsibility initiatives.

Mr Muchenje, seen by technology experts as a turnaround strategist, is famed for dragging NetOne out of the woods in 2018.

He transformed the enterprise from being a loss-making firm to a profitable after declaring its first month-on-month profit during the year.

He is a chartered accountant by profession who has previously held the positions of group CEO at Intarget Group, FirstRand Bank Celpay International BV; executive head of sales (Vodacom SA); head of wireless application, sales and marketing director (Vodacom DRC) and founding finance director (Vodacom DRC).

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Black market pacified

Source: Black market pacified | Herald (Top Stories) Zvamaida Murwira Senior Reporter Parallel market rates remained stable yesterday following the decision by Reserve Bank of Zimbabwe Governor, Dr John Mangudya to liberalise the United States dollar exchange rate against Real Time Gross Settlement balances. The containment of the parallel market rate has been described by […]

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Source: Black market pacified | Herald (Top Stories)

Zvamaida Murwira Senior Reporter
Parallel market rates remained stable yesterday following the decision by Reserve Bank of Zimbabwe Governor, Dr John Mangudya to liberalise the United States dollar exchange rate against Real Time Gross Settlement balances.

The containment of the parallel market rate has been described by economic analysts as a sign of confidence to the monetary policy measures introduced by the central bank.

A survey by The Herald yesterday showed that the black market rate of the US was stable as it hovered around 1:3.5 bond notes which is the figure that was prevailing before the announcement of Monetary Policy Statement on Wednesday.

The black market, however, maintained a two tier rate of the US dollar to the bond note with EcoCash transfers pegged at 1:3.8.

In an interview yesterday, Labour and Economic Development Research Institute of Zimbabwe director Dr Godfrey Kanyenze said the black market rate should fall gradually because what the central bank did was what industry had been calling for.

“The release of the exchange rate is what the market has always been pushing. The parallel market rate should fall, but that will only happen if Government manages to secure enough lines of credit to back up the RTGS dollar. You will realise that there is a lot of demand of the US dollar to carry out various activities,” said Dr Kanyenze.

“We have to state that falling of the parallel market is achievable, but it depends on the availability of adequate lines of credit so that we have reserves.”

University of Zimbabwe Economics Department chairperson, Professor Albert Makochekanwa said the black market rate will ultimately fall should banks be allowed to trade in forex as announced by the central bank.

“Of course it might be too early now, but definitely that decision by the central bank will see black market rates tumbling,” said Prof Makochekanwa.

Several foreign exchange traders in the black market said business was low as the market anticipated how the policy measures by Dr Mangudya would unfold.

“Business was low today, maybe the reason is that it was a holiday. It could also be as a result of the anticipation by the market to see the measures by the central bank coming into effect,” said Mr Marvellous Makunike.

Industrialists and market watchers have hailed the Monetary Policy Statement presented by Dr Mangudya, saying it will kill the foreign currency parallel market and help increase production.

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Chrome producers feel the heat

Source: Chrome producers feel the heat | The Herald February 22, 2019 Munyaradzi Musiiwa Midlands Correspondent Local ferrochrome producers are starting to feel the heat over plummeting global chrome prices that are likely to affect their viability with far reaching implications on the economy. According to the producers, Global markets for ferrochrome and chrome ore […]

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Source: Chrome producers feel the heat | The Herald February 22, 2019

Chrome producers feel the heat

Munyaradzi Musiiwa Midlands Correspondent
Local ferrochrome producers are starting to feel the heat over plummeting global chrome prices that are likely to affect their viability with far reaching implications on the economy.

According to the producers, Global markets for ferrochrome and chrome ore have taken a downturn and 2019 is forecast to have depressed market conditions largely due to some imbalance in supply versus demand as well as uncertainties associated with global trade wars and changing economic dynamics of the key stainless steel producing countries.

The local producers have also accused big international players of suffocating African economies by dropping the prices of chrome so as to frustrate developing countries.

In an interview, Zimbabwe Mining and Smelting Company (Zimasco) General Manager Marketing, Ms Clara Sadomba said depressed market conditions are adversely affecting production at the country’s major ferrochrome and chrome ore producers.

She said Zimasco which is operating at 80 percent capacity is making significant strides in the industry is making frantic efforts to stay afloat in the wake of plummeting global ferrochrome and chrome ore prices.

“Global markets for ferrochrome and chrome ore have taken a downturn and 2019 is forecast to have depressed market conditions largely due to some imbalance in supply versus demand as well as uncertainties associated with global trade wars and changing economic dynamics of the key stainless steel producing countries.

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Shocking! Family member dies a day after a human head was discovered at their homestead

A FAMILY from Silobela has been plunged into mourning following the mysterious death of one of its members a day after a human head was discovered at their homestead. Things got terrible for the Mguqukas who were still trying to come to terms with a hu…

A FAMILY from Silobela has been plunged into mourning following the mysterious death of one of its members a day after a human head was discovered at their homestead. Things got terrible for the Mguqukas who were still trying to come to terms with a human head that was discovered at their homestead a day […]

Registry to keep credit culture in check

Source: Registry to keep credit culture in check | The Herald February 22, 2019 Dr Chipika Michael Tome and Kudakwashe Mhundwa Business Reporters About 18 banking institutions and 140 financial institutions have to date registered to be part of the Reserve Bank of Zimbabwe’s Credit Registry, as the apex bank moves to keep the country’s […]

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Source: Registry to keep credit culture in check | The Herald February 22, 2019

Registry to keep credit culture in checkDr Chipika

Michael Tome and Kudakwashe Mhundwa Business Reporters
About 18 banking institutions and 140 financial institutions have to date registered to be part of the Reserve Bank of Zimbabwe’s Credit Registry, as the apex bank moves to keep the country’s credit culture in check.

The Credit Registry, which went live in 2017, addresses Zimbabwe’s ease of doing business deficiencies relating to getting credit and explores two sets of issues, strength of credit reporting systems and effectiveness of collateral and bankruptcy laws in facilitating lending.

Addressing delegates recently at a Financial Inclusion Forum RBZ deputy governor Dr Jesimeni Chipika said monitoring credit borrowing is an essential tool in keeping the country’s credit culture in check.

“As Credit Registry we are nearly there, it’s the other financial inclusion strategy initiative which we are working on as RBZ, when we are rolling out financial inclusion in the country if we don’t monitor credit behaviour it can introduce instability in the country’s financial sector.

“If people are not paying their loans we can get into problems, so the Credit Registry was introduced and we are happy to say it is being used so far by 18 banking institutions, 143 of our 200 financial institutions are already consulting the credit registry and three non-banking institutions, so the credit registry is doing very well and we are hoping that it will keep our credit culture in check,” said Dr Chipika.

Studies have shown that comprehensive data on consumer credit histories significantly reduces the costs to new lenders and may eventually enable the banking and micro-finance sectors to tap into global capital markets to obtain funds for lending.

The credit registry is part of ease of doing business reforms to improve Zimbabwe’s attractiveness to foreign and domestic investment, reduce cost of doing business, improve performance of public utilities in delivering quality service to the people as well as create value for money in providing services.

The reforms target 10 key global indices for ease of doing business and these are starting a business, getting credit, protecting minority investors, resolving insolvency, paying taxes, enforcing contracts, trading across borders, construction permits, registering property and getting electricity.

Government expects that the ease of doing business reforms help drive Zimbabwe to a higher position on the World Bank’s competitiveness rankings.

Zimbabwe slipped on the global competitiveness by one place to 126 out of 139 countries during the period 2016-2017 due difficult condition for doing business, the Global Competitive Index report showed.

Meanwhile, Dr Chipika said by the end of the year the collateral registry is expected to be operational and will enable the use of movable properties as security for financial credit from banks and other lenders.

“We are hoping that by the end of the year the collateral registry will be operational because now we have other countries that have succeeded to operationalise.

We have somewhere to learn from — we had already started as you know so we are hoping that together with the help of our development partners we should make it operational by the end of this year,” she said.

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